World Perspectives
livestock

Beef and Cattle Market Anomalies

There are important anomalies in the cattle and beef markets this year. Futures have shown amazing strength, buoyed largely by export demand. Now as fed cattle prices enter a period of seasonal decline, there are factors that suggest 2019 and 2020 may continue to differ from recent years. Heifer Slaughter As a share of steer slaughter (federally inspected or FI), heifer slaughter is running well above the five-year average and 2018 values. At the feedlot level, the share of heifers in feeder cattle receipts has also been consistently running above year-ago levels. Should these trends continue, it could signal lower beef heifer retention rates for 2019 and 2020 that would ultimately tighten cattle supplies in 2020 and 2021.

Fed Cattle W...

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From WPI Consulting

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WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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